Distributed vs Decentralised: Deep Dive

Is Your DHO Distributed or Decentralised?

The whole organisation can encompass many different styles. In a decentralised organisation each nested circle can determine for itself which strategy to employ. A classic diagram to distinguish the three structural forms:

Rand Corp, 1960 Notes: Strategy (how it’s employed here) - The plan for what, why, who, when, how we do what we do. A DHO may start distributed and transition into decentralised and vice-versa.

Purpose

Distributed The organisation’s purpose is clear and formalised (or updated) through a vote by all members.

Decentralised The organisation’s purpose is clear and formalised (or updated) through a vote by all members.

Strategy

Distributed There is a fixed, clear and agreed upon strategy for the whole organisation. A clear strategy is formulated for the entire organisation through multiple (as required) sense and decision making sessions. Once a strategy has been formulated it is then voted into reality (as a mostly forgone conclusion by that point) and fixed. As required this strategy may be updated through a new vote. At any given time it is clear what the exact strategy of the organization is (as it’s written down and voted on). This strategy requires upkeep to continue to evolve as and if the organisation’s strategy evolves. It is advisable to have a role or clear process specifically charged with surfacing and updating the org strategy.

Decentralised There is no fixed strategy for the whole organisation. Strategy is an emergent property of governance. As members, in real time, choose what paths to take through what proposals are funded the strategy evolves and emerges. At any given time it would be difficult to pinpoint what the exact strategy of the organization is.

Example: There is no unified strategy for the Bitcoin ecosystem. There is no single place to point to, to say how Bitcoin is fulfilling its purpose as a decentralised financial system. Any group you talk to in Bitcoin will likely give you a different opinion on what the ideal strategy would be. All these various actors coordinating gives rise to an emergent strategy that is undefined (yet present), as such, Bitcoin would be considered a decentralised network.

Anchor Lamp Lighter

Distributed The anchor Lamp Lighter holds the accountability, responsibility and authority to maintain the coherence of the whole organisation strategy. This role coordinates with other Lamp Lighters or other relevant roles to create and make proposals to update the collective strategy. The Anchor Lamp Lighter is voted in by all members.

Decentralised There is no Anchor Lamp Lighter.

Lamp Lighters

Distributed Lamp Lighters hold the accountability, responsibility and authority to execute on their circle's tasks. They are in charge of coordinating and ensuring the execution of a circle's purpose. Lamp Lighters are held accountable to circle performance and are the point of contact for ensuring a circle is executing its purpose.

Decentralised Lamp Lighters may or may not hold the accountability, responsibility and authority to execute on their circle's tasks. This is up to each circle to decide how they want to be structured and what authority they want to give to their elected Lamp Lighter.

Lamp Lighters only required responsibility is attending Collective Sensing and bringing vital information to and from the parent circle.

Anchor Collective Sensing

Distributed Collective sensing is sensing AND action/decision oriented. Strategy, coordination, and organisation approaches are decided upon. Proposals are brought to the table (for action) and using consent (or other types of governance) decisions are made.Lamp Lighters of the Anchor CS are expected to pick up accountabilities for their circle during the sessions and to follow through (and update accordingly).

Decentralised Collective sensing is sensing oriented. Lamp Lighters attend predominantly to share/gain a better understanding of the whole ecosystem and to bring relevant information back to their circles. No strategic decisions are being made during the Anchor Collective Sensing calls.

All strategic decisons/actions happen within Circles/Roles or through a DHO vote. For example, a Lamp Lighter attends the Anchor CS call to gain understanding of opportunities on where the circle may best show up, then it takes this information back to their own Circle to make decisions and take actions.

DHO Voting

Distributed A DHO vote decides strategy by voting in (or updating) a clear and singular strategy. It’s also how we distribute funds in a secure manner, create (and elect) roles who wield decision-making authority (including the ability to spend funds), and officially change any element of organisational governance.

Most organisational decisions are being made during the Anchor Collective Sensing calls. With a distributed strategy-creation-process an organisation needs to go through the effort to create a singular and clear strategy. Multiple strategies may only be empowered by the organisation at any given time if this was a clear decision made by the organisation (through a vote) to do so.

Decentralised A DHO vote decides strategy through which proposals are passed and the various strategies they represent. Voting is how the organisation collectively determines, in real time, which path(s) (potentially plural) and strategie(s) (potentially plural) to take. As well as, how we distribute funds in a secure manner. Sensemaking is being made during the Anchor or Circle’s Collective Sensing or the open DHO Diligence sessions. With a decentralised strategy-creation-process an organisation need not go through the effort to create a singular and clear strategy. Further, multiple strategies can be empowered by the organisation at any given time and through natural selection (through which proposals receive or don’t receive funding) strategies emerge and dissolve.

DHO’sday DHO’sday is the go-to place to know about what other groups are doing, what contributions are being made to the whole and to gain an understanding of where the organisation is going.

Distributed In a distributed organisation DHO’sday plays a second order to Collective Sensing on deciding strategy, since strategy is already decided. Voting is about interpreting if a proposal aligns to the official strategy or not, or about officially changing the strategy with a separate vote.

Decentralised In a decentralised organisation DHO’sday is the beating heart of where organisational strategy emerges. As members propose different paths/contributions/quests/etc for funding a pattern emerges and decisions are made (through collective voting) on which paths to take. In a decentralised organisation DHO’sday is how the strategy emerges through members presenting various paths/budgets and voting.

Circles & Budgets

Distributed All Circles have their own budget. If a circle exists (e.g. Tech Circle) new proposals in that category are required to go through that circle, or the new member may propose to create a new circle first. Each circle is free to decide which processes they adopt (e.g. DHOsday) to spend their own treasury.

Decentralised Circles may or may not have their own budget. If they do, they can create new assignments and quests as they see fit (run their own DHO’sday). If they don’t, then all their quests/assignments need to go to the next higher treasury (and go through the main DHO’sday). Each circle, that has their own budget, is free to decide which processes they adopt (DHOsday) to spend their own treasury. New proposals may (or may not) be made to a specific circle, it’s up to the proposer if they want to join a circle (by selecting one), join the anchor circle (by not choosing one), or create a new circle (through a new-circle proposal, often times with a new budget for that circle).

Circle Collective Sensing

Distributed

Decentralised

Compensation All agreements about compensation need to be proposed, and passed (voted) upon upfront and present in the DHO. Quests are paid out in milestones (for Quests) or Assignments and are assessed on the value the member brought to the organisation during that period.

Distributed

Decentralised Members simply state what value they’re intending (and have) brought to the organisation and request payment. It’s up to the members of the DHO to assess that value/offer and decide (through voting) whether or not the agreement was fulfilled (and to pay). If not, the member can integrate the feedback (take the actions suggested) from members who voted down and try again.

Organisational Hierarchy

Distributed A distributed organization “distributes” organisation-wide hierarchy amongst clearly identified roles. A distributed organisation goes about the process of creating clear roles to hold clear authority and accountability to enact strategy for the whole organisation. (e.g. electing an organisation-wide “treasury manager” to have autonomy to control the treasury as they see fit).

Distributed orgs can do this in democratic fashion, such as, voting for badges/roles to hold these positions of clear authority. (e.g. a distributed org gives much more power and authority to those holding the “Lamp Lighter” badge.)

In a distributed organisation, primary organizational decision-making power is held by the role holders and are accountable to the Voice holders (as voice holders can make a proposal to select a new member to hold a role).

E.g. Lamp Lighters are elected by the organisation to have the clear authority for strategy and decision making within their circle. Members decide to change this authority through selecting a new Lamp Lighter.

Decentralised A decentralised organization “decentralises” organisation-wide hierarchy amongst all members. There are no clear roles to determine organisational strategy or make strategic decisions for the whole organisation. Any member is equally able to engage in strategy through the proposal and voting process (by putting up proposals for funding to enact a particular strategy).

In a decentralised organisation, primary organizational decision making power is held entirely by the Voice holders. Circles (or other groups) may, or may not, create their own hierarchies to enact their funded strategies. (e.g. there would be no organisation-wide “treasury manager” to have autonomy to control the treasury, each treasury change would require a separate proposal/vote that encompasses how the change would take place, compensation and any other details).

E.g. Lamp Lighters are elected by the organisation to bring information to and from circles. Nothing more, nothing less. Every circle is free to determine if they want to give more authority and responsibility to this role and that decision is only valid within that Circle and not the whole organisation.

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